Bombay HC Orders ₹70.12 Lakh Stamp Duty Refund To Pune Developer After Cancelled Development Agreement
Mumbai, August 29, 2026: The Bombay High Court has directed the Maharashtra stamp authorities to refund Rs 70.12 lakh in stamp duty to a Pune-based partnership firm after holding that a development agreement, which was subsequently cancelled, had failed to achieve its intended purpose. Justice Amit Borkar, in a judgment pronounced on August 20, allowed a writ petition filed by Sai Innovation, a…
On August 29, 2026, the Bombay High Court ruled that the Maharashtra stamp authorities must refund ₹70.12 lakh in stamp duty to a Pune-based firm, Sai Innovation. The court found that a development agreement with Pune landowners, which Sai Innovation executed in 2013, failed to achieve its intended purpose. Justice Amit Borkar upheld a petition filed by the firm, overturning earlier orders that denied the refund claim.
The court ordered the refund, including 6% simple interest from April 7, 2014, to be paid within six weeks. The judgment sets a precedent, as development agreements are often cancelled, making refunds difficult to obtain. Hitesh Thakkar, VP of Naredco Maharashtra, welcomed the decision, noting it provides clarity for similar situations.
The dispute arose when Sai Innovation's development plans stalled due to unsanctioned building plans and party disputes. On February 18, 2014, the parties signed a cancellation deed, returning the stamp duty payment. The court examined refund provisions, noting a development agreement could qualify for refund under Section 47(c)(5) of the Maharashtra Stamp Act if the agreement "fails of the intended purpose."
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